OECD, S&P Forecast Moderate GDP Growth for India, Italy in 2025-26 Amid Global Challenges

S&P Global Ratings and the OECD have provided updated economic forecasts for several countries in 2025 and beyond. Italy's GDP is expected to grow modestly, with S&P projecting 0.6% growth in 2025, increasing to 0.8% in 2026, while the OECD expects 0.6% growth in both 2025 and 2026. Germany's growth is forecasted to be slow at 0.2% in 2025 but is expected to accelerate in the following years due to significant defense and infrastructure investments. India is anticipated to experience robust growth, with S&P maintaining a 6.5% GDP growth forecast for the fiscal year ending March 31, 2026, supported by strong domestic demand, benign monsoon conditions, tax cuts, and increased government investment. The OECD raised India's 2025 GDP growth forecast by 40 basis points to 6.7%, highlighting domestic demand, GST reforms, and monetary easing as key factors, though higher tariffs are expected to challenge the export sector. Both agencies note inflation easing in India due to declining food prices, but global trade uncertainties, especially from increased U.S. tariffs, pose risks to investment and trade in 2025 and beyond.